Russia cancels China pipeline tender
MOSCOW, December 30, 2015 – Gazprom has cancelled a USD 2.2-billion tender for the partial construction of its 4,000-km Power of Siberia gas pipeline to China, the Russian energy giant stated in a regulatory filing on Tuesday.
The tender was for four sections of the pipeline, stretching over 822 km, as well as their compressor stations. Gazprom made the tender announcement in November.
Reuters reported that Russia’s anti-monopoly body had questioned the tender’s regulatory compliance. Last week, Gazprom cancelled two additional tenders for a 340-km section of the pipeline but awarded USD 2.8 billion in contracts for unrelated work on the pipeline to local company SGM, owned by a Putin ally.
Power of Siberia will deliver 38 bcm (1.34 tcf) of gas per year to China over 30 years and will be completed in 2019. China’s natural gas imports are set to increase despite slowing growth, with plans to derive 10% of its energy from natural gas from the current 5% by 2020. Consumption rose to 60 bcm (2.12 tcf) in 2013, a 12% spike from 2012.
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